Administrative procedures

Bankruptcy procedure: a step-by-step guide

Within Luxembourg, you can initiate bankruptcy proceedings in three ways:

by admission: a business owner who becomes insolvent must inform the court clerk's office about this within the same month;

by application: the bankruptcy is declared after application by one or more creditors of the company;

ex officio by the court.

Admitting bankruptcy to the clerk of the court

District court of Luxembourg

District court of Diekirch

Companies and bankruptcy

Effects of the declaratory judgment of bankruptcy for the subject

Court decision

Enforced liquidation

If you are judged bankrupt, you must relinquish the administration of your assets to a receiver who will be responsible for representing the bankrupt company and the interests of the creditors. The court will also appoint a bankruptcy judge responsible for accelerating and monitoring operations, management and liquidation of the bankrupt estate. The company must immediately cease its activities.

As soon as the bankruptcy judgment is announced, all civil proceedings must be suspended.

Effects of the declaratory judgment of bankruptcy for the subject

Resources

The Guichet entreprises business portal offers information on company bankruptcies.